Dear Shareholder,

Several groups have expressed interest in our EndoPrep^TM reagent for the detection of endotoxin in blood samples.  Also, Lonza a major supplier of endotoxin products is recommending our product to their customers.

Our email newsletter now reaches over 9,500 potential customers around the globe.  This has enhanced our sales and marketing program producing a significant increase in sales over the first half of the fiscal year.

One indication that we are focusing on is necrotizing enterocolitis, an endotoxemia which affects newborns with a mortality rate of over 80%.  Our products will be tested for both diagnostic and treatment of this condition. We have submitted an SBIR to NIH for funding this project.

We also are working on the development of a new endotoxin assay with a major life science company using our technology.

Our SBIR for multifunctional resins received an excellent score from the scientific review committee and we are still awaiting news of funding from NIH.

We continue to add new customers who are evaluating our endotoxin removal and detection technology.  These customers include small and large biotech companies, academia and large pharmaceutical companies.

 

 

Sincerely,

 

Michael G. Pepe, Ph.D.

Chairman, President and CEO